Now that we are approaching the end of the first half of the year, I think it would be a good time to start talking about habits.
Have you succeeded in creating the habits you said you would at the beginning of the year?
If you don't, here are some tips that may help you get closer to your goals:
1. Be specific
Promising to “eat healthier” or “spend less on DoorDash” isn't enough.
How many calories will you cut from your current diet? How often will you cook at home instead of ordering food online? How long will you continue to implement these changes until you review your implementation plans?
Traders also need clear rules for forming new habits.
Instead of planning to be “more disciplined,” you can target specific goals like taking profits when your gains reach 30% or not checking your social media during your trading hours.
2. Make it easy for you
You are more likely to stick to a habit if it is easy for you to do.
Are you planning to avoid meme stocks? Remove them from your watchlists. Want to be more consistent with your trading diary? Start with basic statistics and only add more information as you become more consistent with your entries.
When forming new habits, you'll need to prioritize consistency before working on improving execution.
3. Set up reward systems
If you get rewards every time you follow your new rule, you'll have more motivation to keep doing it, and eventually, you'll get enough repetitions to turn it into a habit.
You don't have to be fancy about your rewards. It could be as simple as getting more money for your Diamond Hands trades or perhaps getting an extra half hour allowance to play. Use whatever works for you!
4. Work on one habit at a time
Sure, it would be nice to acquire ten new trading habits and become a disciplined and consistently profitable trader within a couple of months.
But remember that, like our muscles, our discipline and willpower have limits. One trading rule applied consistently is better than five new “habits” done whenever you want.
Forming new habits is not easy. But if you want to become a consistently profitable trader, you'll need to form key habits that will help maintain your edge and improve your trading.
Are you looking for your own place to record your market observations and trading statistics? If so, check out TRADEZELLA! It's easy to use
A blogging tool that can lead to valuable insights about performance and strategy! You can easily add your thoughts, plans and track your psychological state with each trade. Click here to see if this is right for you!Disclaimer: Babypips.com earns a commission from any signups through our affiliate link. When you subscribe using our affiliate links, it helps us maintain and improve our content, much of which is free and available to everyone – including Pipsology School! We appreciate your support and hope you find our content and services useful. Thank you!
